Microsoft, Elon Musk and Taiwan: OpenAI warned investors of risks ahead of IPO

OpenAI, one of the leaders in the artificial intelligence field, listed key business threats in a private investor financing document seen by CNBC. In those materials, prepared for a recent funding round and resembling a prospectus, the ChatGPT creator acknowledged its vulnerabilities related to dependence on its largest partner, geopolitics and lawsuits. The risks highlighted by OpenAI provide a glimpse of what will be included in the company's IPO filing, according to CNBC.

OpenAI cites its close relationship with Microsoft, which provides the startup with "a significant amount of funding and computing power," as a major risk factor. The ChatGPT developer emphasized that performance will depend on the ability to build relationships with other partners.

"If Microsoft changes or terminates its commercial partnership with us, or if we are unable to diversify our partner base, our business, prospects, operating results and financial condition could be adversely affected," the company wrote in a statement to CNBC.

In addition to its relationship with Microsoft, the startup cited threats of significant capital expenditures, dependence on hardware resources, a non-standard corporate structure in the form of a "public benefit corporation," and litigation with Elon Musk. According to CNBC, OpenAI detailed three claims filed by Musk or his company xAI, which became part of SpaceX in February 2026. The parties have been suing since 2024, with the first substantive hearing set to begin in April, the network noted. OpenAI also mentioned at least 14 lawsuits from ChatGPT users in the U.S. and their families.

OpenAI paid special attention to geopolitical risks affecting the computing infrastructure. The creator of ChatGPT stated that training and operation of artificial intelligence requires enormous power, and the global shortage of chips can cause significant damage to a startup. In particular, OpenAI assessed the threats of growing tensions between China and Taiwan. If Taiwan's TSMC - the world's largest custom chip maker - is affected by the regional conflict, the startup could face "serious disruptions" in its supply chain, CNBC reported.

Microsoft has been an investor in OpenAI since 2019 - with ChatGPT becoming publicly available in November 2022. In total, Microsoft has invested $13 billion in the startup. At the time of the AI developer's restructuring in October 2025, Microsoft disclosed that its diluted 27% stake in the startup's commercial division was valued at $135 billion.

Although OpenAI and Microsoft are closely aligned, they are increasingly competing for users in the fast-growing generative AI market. In 2024, Microsoft added OpenAI to the list of competitors in its annual report - a list that for years included Amazon, Apple, Google and Meta, CNBC recalls.

The Wall Street Journal and CNBC sources agree that OpenAI will hold an IPO in the fourth quarter of 2026. According to CNBC, in February of this year investors valued the company at $730 billion. In a public offering, the capitalization could reach about $1 trillion, which would make the IPO of the ChatGPT developer one of the largest in history.

This article was AI-translated and verified by a human editor